Guide to Blockchain Gaming

Blockchain gaming is changing the way we play video games. It gives players more control over their in-game items and opens up new ways to earn real money while playing by combining blockchain technology with gaming. If you’re new to cryptocurrency or gaming, read below to learn more about blockchain gaming, see some examples, and learn how to earn from it. 

What are Blockchain Games?

Blockchain games basically integrate blockchain technology into video games. It enables players to own, trade, and monetize in-game assets securely and transparently. They are a core part of Web3 since games can be created on top of it. Through blockchain games, Web3 brings players into an interconnected digital world where they can actively participate in game investments and retain full control over their digital assets. 

How Does Blockchain Technology Enhance the Gaming Experience?

Blockchain technology can enhance the gaming experience by introducing true ownership, transparency, and security. Players can own their digital assets outright, which means that the items and cryptocurrencies they earn or buy in a game are stored securely on the blockchain and can be traded or sold independently of the game. The transparency of blockchain also ensures fair play by logging all in-game transactions and activities, making cheating or manipulation nearly impossible. 

What are the Essential Crypto Gaming Tools?

Crypto Wallets

A cryptocurrency wallet functions similarly to your gaming passport. You can play a variety of blockchain games without creating a new account, which secures your digital currency and assets. You can take your progress and assets wherever you go when you connect your wallet to a game. A good example is Ronin, a software wallet that allows you to play games in Axie Infinity. You can also use it to store your digital assets and send and receive tokens. This wallet was developed by Sky Mavis, one of the leading brands in the crypto gaming world. 

Smart Contracts

Smart contracts are integral in blockchain gaming since they automate and safeguard various in-game operations. But what are these? They are codes stored on the blockchain that automatically carry out predetermined actions when certain criteria are met. Smart contracts in gaming manage transactions such as digital asset transfers, NFT ownership verification, and incentive distribution without requiring a middleman such as a bank. Aside from lowering the dangers of fraud, it also assures that transactions are completed faster and more transparent. For example, when a player completes a challenge or wins a tournament, a smart contract can transfer awards promptly, guaranteeing that players are compensated fairly and quickly. Smart contracts promote trust between developers and participants by eliminating the need for centralized systems.

Tokens

Tokens are virtual money that are used in blockchain games to provide in-game economies, rewards, and transactions. Like actual currencies, tokens tend to be fungible, which means that every unit is the same and can be used interchangeably. These can be used by players to trade with other players, purchase in-game items, and buy upgrades. Furthermore, several blockchain games reward players with tokens for completing tasks, winning tournaments, or joining game activities. For instance, players of Axie Infinity can earn Smooth Love Potion (SLP), a token that can be exchanged for actual cash or used to create new Axies. By providing players a reward to interact with the game, tokens help close the gap between the virtual and the real world.

NFTs (Non-Fungible Tokens)

The ownership of particular in-game items, such as characters, weapons, skins, or virtual land, is represented by non-fungible tokens. The blockchain stores each NFT's unique identification, which makes it secure and verifiable. What’s great about NFTs is that you can trade, sell, or display these both within and outside the game because you have complete control over them. NFTs, for instance, can stand in for specially created virtual land or player-owned, profit-generating avatars in The Sandbox. NFTs guarantee that in-game items maintain their worth and distinctiveness, which enhances the gaming experience.

What is the Difference Between Blockchain Gaming and Normal Gaming?

Ownership of Assets

In traditional games, players can buy in-game objects, but they do not own them. The game developer has complete control over the items. These are locked within the game and can even be removed or deleted if the game crashes. In blockchain games, participants retain entire ownership of their digital assets. For example, if you buy a sword and shield NFT on the Polygon blockchain, you can keep, trade, or sell these outside the game. This independence allows participants greater control over their assets.

Earning Potential

Unlike most traditional games that use a pay-to-play or pay-to-win model that requires players to spend money without receiving anything in return, blockchain games use a play-to-earn principle. What does this mean? Players are rewarded with cryptocurrencies, tokens, or NFTs for playing games, just like in Axie Infinity, wherein users acquire tokens such as SLP by completing battles and tasks. These digital assets can then be sold for real money, thus making it a great platform for earning. No wonder many people make blockchain gaming a productive pastime rather than a hobby.

Advantages of Blockchain Gaming

True Ownership of In-game Assets

Blockchain technology allows players to own their in-game assets, unlike traditional games wherein developers control their assets. Players have the freedom to buy, sell, and trade their assets whenever they want. A perfect example of this is iguVerse, which is a GameFi platform focused on linking the ecosystem of blockchain-based games. Players here can earn rewards such as NFTs, which they can later trade on their platform. This ownership provides players complete power, making the time and money they have invested in the game more worth it.

Play-to-Earn Opportunities

Imagine earning money by playing your favorite game. It’s like hitting two birds with one stone. Blockchain games reward players with cryptocurrency or valuable items, giving your gaming time real-world value. The play-to-earn system allows players to acquire significant prizes such as cryptocurrency or NFTs through gameplay. These awards can be sold or traded for real money, opening up new revenue platforms for users. In Axie Infinity, players can win tokens for defeating Axies, which may then be exchanged for real currency. Play-to-earn games make gaming not only engaging but also financially rewarding.

Enhanced Security and Fairness

Blockchain technology makes games safer and fairer. Cheating is harder because all actions are transparently recorded on the blockchain, which makes it more difficult to hack or manipulate. Smart contracts automatically enforce rules, ensuring everyone plays by the same standards, thus instilling trust among players. For example, if you win an item in a game, a smart contract assures you receive your reward instantly and without dispute. Because of this fairness, players and developers gain more trust, which makes the gaming environment more open.

Popular Blockchain Gaming Models

Play-to-Earn (P2E)

In play-to-earn games, users engage in gaming activities to receive rewards that have real-world value. For instance, players can get tokens such as Smooth Love Potion (SLP) in Axie Infinity by successfully finishing quests and battles. By exchanging these tokens on cryptocurrency platforms, users can make money simply by participating in the game. Another popular P2E game is Gods Unchained, wherein players can collect cards that they can trade or sell, thus giving them a chance to make real money while having fun.

NFT-Based Games

Non-fungible tokens (NFTs) are used in this game to represent special objects such as collectibles, weaponry, or characters. You can use such items outside of the game or trade them freely if you own them. In The Sandbox, for instance, players may create, purchase, and sell NFT-based items, characters, or land parcels that can be used or exchanged on the platform. Similar to this, participants in Sorare take part in fantasy soccer leagues by collecting NFT-based cards that feature popular soccer players. They have a chance to make money from their activities within the game since these NFTs have their worth and can be traded in marketplaces. As a result, there is a thriving market where gamers may make money off their gaming experiences. 

Metaverse Platforms

On this type of platform, you can create, own, and trade digital assets or virtual real estate. These metaverse platforms offer opportunities for exploration by integrating social engagement with interactive gameplay. It enhances the user experience and fosters dynamic communities where players collaborate, share insights, and participate in events. In Decentraland, for instance, players may buy virtual land in the form of NFTs, which they can develop and then rent or sell to other users. Another example is The Sandbox, which allows users to create virtual environments, organize events, and even create games. 

Notable Blockchain Games

Axie Infinity

In Axie Infinity, players collect, breed, and battle creatures called Axies. By winning battles and completing daily tasks, players earn two primary tokens: Smooth Love Potion (SLP) and Axie Infinity Shards (AXS). At its peak, Axie Infinity had over 2.7 million daily active players and generated billions of dollars in total trading volume. It became especially popular in countries like the Philippines, where players used earnings from the game to support their families during economic hardships. Its play-to-earn model revolutionized the gaming industry, turning gameplay into a reliable source of income for many players. 

Decentraland

On the Ethereum blockchain, Decentraland is a virtual environment where users may purchase, create, and trade virtual land in the form of NFTs. Players may create their own unique experiences by personalizing each land parcel with buildings, games, and events. Decentraland has drawn major corporations like Adidas to the platform by hosting events like virtual music festivals and fashion week. Decentraland's economy has produced millions of dollars in virtual land sales, according to the latest figures, securing its position as a market leader in metaverse gaming. In fact, a virtual estate in Decentraland was sold for a humongous $2.4 million worth of cryptocurrency!

The Sandbox

The Sandbox is a blockchain-powered metaverse that allows users to create, own, and monetize virtual items and experiences. Players may create games, characters, and other products that can be sold as NFTs on marketplaces using programs like VoxEdit and Game Maker. Snoop Dogg, Atari, Adidas, and other well-known companies have collaborated with The Sandbox to produce unique experiences and content. Its latest partnership is with King Kong IP to provide an expansive new realm to its users. Aside from collaborations and partnerships, The Sandbox also boasts of its individual land pieces that were sold for thousands of dollars on its virtual real estate market, making it one of the most well-liked blockchain games among investors and developers.

How to Make Money from Blockchain Gaming

Play-to-Earn Mechanics

You can earn cryptocurrency or NFTs by playing blockchain games. Completing tasks, winning tournaments, or exploring virtual worlds often comes with valuable rewards you can sell. For instance, you can earn Smooth Love Potions (SLPs) in Axie Infinity when you win Arena mode matches or when you sell your Axies on the Marketplace. Other similar platforms include Gods Unchained, wherein users may earn collectible cards that can be traded on marketplaces; and Thetan Arena, wherein players can earn tokens that can be converted into currency. Games with play-to-earn mechanics attract players seeking monetary gains beyond entertainment because they showcase how talent and strategy may be immediately translated into real profits.

Trading Digital Assets

Many players make money by selling rare items or NFTs they earn in games. Some items become highly valuable, especially if they’re unique or limited. For example, in The Sandbox, players can create and trade land, avatars, or in-game experiences as NFTs. Some pieces of land have sold for hundreds of thousands of dollars, particularly those that are located near major brands like Atari or celebrity spaces such as Snoop Dogg’s virtual mansion. Platforms like OpenSea and Rarible facilitate the buying and selling of these assets, making it easier for gamers to monetize their virtual belongings. This trading ecosystem rewards players who enjoy investing and creating rare content.

Investment in Gaming Projects

As the blockchain gaming industry expands, it can be profitable to get involved early by acquiring shares before they get launched. You can watch your assets grow by investing in well-known or up-and-coming blockchain gaming companies through platforms like Acquire.Fi. For instance, when the value of Illuvium's ILV token skyrocketed, investors who backed up the company early enjoyed outstanding gains. The same goes for Star Atlas as users who bought in-game ships or land assets early on experienced a sharp rise in value. These examples show how investing in blockchain gaming companies can be a good opportunity to make money.

Selling your Stake in Blockchain Gaming Companies

Putting money into Web3 initiatives or blockchain gaming companies can be a wise move. But if you want to exit your position, you can easily sell full or partial ownership of your blockchain gaming company in Acquire.Fi’s Web3 secondary marketplace. For example, if you invested in Immutable, a leading provider of Layer 2 solutions for blockchain games, you could later sell your shares to capitalize on its growing success. This method allows investors to reinvest in other projects or retrieve revenues without limiting themselves to long-term commitments.

Staking and Yield Farming

There are some games where you may earn additional benefits by staking your tokens and locking them up for a while. A good example of this is DeFi Kingdoms, wherein players may receive passive benefits by staking JEWEL tokens. Another way to generate passive revenue with blockchain games is yield farming. While Alien Worlds enables users to mine TLM tokens by supplying liquidity or finishing tasks, Mobox allows players to stake their in-game assets to produce incentives. For individuals who keep and strategically employ their in-game tokens, these features create a consistent revenue stream by fusing decentralized finance (DeFi) with gaming.

Creating Content or Virtual Assets

If you’re creative, you can design and sell virtual items or spaces in metaverse games like Decentraland or The Sandbox. There are some players who are willing to pay for unique designs or original concepts. For example, investors who want to stand out or hold events in these virtual places may be drawn to custom-built virtual real estate, branded clothing, or interactive experiences. Players may purchase and exchange digital assets from renowned companies like Gucci’s Metaverse. Some creators, on the other hand, find it easier to share their ideas via tools like VoxEdit. Blockchain gaming provides many opportunities for artists, designers, and developers to make money from their creations.

Conclusion

Investing in blockchain gaming presents an exciting opportunity to combine entertainment with real financial rewards. It empowers players by giving them true ownership of their assets and introduces innovative earning models such as play-to-earn. Popular games like Axie Infinity exemplify this trend, highlighting the potential for growth and engagement in this evolving market.